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CUC Announces Second Quarter Results for the Period Ended June 30, 2016
CUC Announces Second Quarter Results for the Period Ended June 30, 2016 CUC Announ...
About this update from Caribbean Utilities Co. Ltd. Class A
[{"type":"text","content":"\n\n\n\nCUC Announces Second Quarter Results for the Period Ended June 30, 2016\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\nCUC Announces Second Quarter Results for the Period Ended June 30, 2016\nCanada NewsWire\nGRAND CAYMAN, Cayman Islands, July 29, 2016\n\n\n\nCaribbean Utilities Company, Ltd. is listed for trading in United States dollars on the Toronto Stock Exchange. \n\n\n\nGRAND CAYMAN, Cayman Islands, July 29, 2016 /CNW/ - Caribbean Utilities Company, Ltd. (TSX: CUP.U) (\"CUC\" or \"the Company\") announced today its unaudited results for the Second Quarter ended June 30, 2016 (all figures in United States dollars).\n\nSales for the three months ended June 30, 2016 (\"Second Quarter 2016\") totalled 156.2 million kilowatt-hour (\"kWh\"), an increase of 10.2 million kWh in comparison to 146.0 million kWh for the three months ended June 30, 2015 (\"Second Quarter 2015\"). This 7% sales growth was driven by warmer weather conditions and an increase in customer numbers.\n\nOperating income for Second Quarter 2016 totalled $7.2 million, an increase of $0.8 million when compared to operating income of $6.4 million for Second Quarter 2015.  The increase is primarily attributable to the 7% kWh sales growth, partially offset by higher depreciation and general and administration costs.\n\nIn addition to the factors positively impacting operating income, net earnings increased as a result of higher capitalization of interest expenses through the Allowance for Funds Used During Construction (\"AFUDC\") of $1.7 million in Second Quarter 2016 when compared to $1.0 million in Second Quarter 2015.  The increase in AFUDC, and resulting reduction in Finance Charges, is due primarily to the Company's 39.7 megawatts (\"MW\") Generation Project. AFUDC is the capitalisation of Financing Cost which is calculated by multiplying the Company's Cost of Capital rate by the average construction work in progress for each month.\n\nThe Company anticipates a reduction in AFUDC and an increase in depreciation costs commencing with the completion of the Generation Project.\n\...